Tech giant Apple has recorded the biggest drop in iPhone sales since the early months of the COVID pandemic.

Sales for January to March were down 10% on the same period last year – something not seen since the 2020 iPhone model was delayed due to lockdown factory closures.

Overall, Apple earned $90.8bn (£72.4bn) in the latest quarter – down 4% from last year. It was the fifth consecutive three-month period that the company’s revenue dipped from the previous year.

Apple’s profit in the past quarter was $23.64bn (£18.85bn) – a 2% dip from last year.

It was good news, however, for the overall value of the company as its share price rose nearly 7% after investors had expected a bigger drop in sales.

Meanwhile, Apple chief executive Tim Cook has discussed how the company is set to use artificial intelligence (AI).

While rival Samsung introduced phones that can feature AI, including generative AI chatbots, Apple has yet to announce how it will be embedded into its iPhones.

The next iPhone is expected to feature AI microchips and bigger screens.

Apple will reveal the newest software when it holds its annual developers’ conference in June.

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Generative AI could power phones to write software code, essays or create images based on a prompt by users.

Mr Cook said the company feels “very bullish about our opportunity in generative AI and we’re making significant investments”, adding: “We’re looking forward to sharing some very exciting things.”

Labour has won control of a string of Leave-voting councils as results begin to roll in from the local elections across England and Wales.

The party seized control of Rushmoor in Hampshire from the Conservatives shortly after 3am – a council the Tories had run for the last 24 years – with a spokesman calling the result “truly historic”.

They also took Hartlepool Council – the scene of a major by-election loss back in 2021, which led Sir Keir Starmer to consider quitting as leader.

A spokesperson said the win – that saw the authority move from no overall control into Labour’s hands – was “a ground-breaking moment” after the defeat three years ago.

Politics live: Follow the results as they come in

Labour also claimed victory in Thurrock, Essex, from no overall control, saying it was “exactly the kind of place we need to be winning to gain a majority in a general election”.

Meanwhile, the Conservatives lost control of North East Lincolnshire after Labour won five of the seats up for grabs – with neither party now holding a majority on the council.

All four areas overwhelmingly voted Leave in the 2016 referendum, with Thurrock supporting it by 72.3%, North East Lincolnshire by 69.9%, Hartlepool by 69.6% and Rushmoor by 58.2%.

More than 2,600 council seats across 107 councils are up for grabs in England, alongside 11 mayoral elections, a parliamentary seat and police and crime commissioners throughout England and Wales – so there is still a way to go.

But early signs show Labour is winning back seats in areas it lost over the Brexit debate, as well as making gains in traditionally Tory voting councils.

Shadow environment secretary Steve Reed told Sky News that while it was “early days”, the results so far were showing positive signs for Labour come the next general election.

“These are not polls,” he said. “These are people getting off their backsides, going out of their homes, into a polling station, putting a cross on a party that they want to govern their local area.

“People are crying out for change. I know that from speaking to people on the doorsteps and tonight, it looks like people around the country are voting for change.”

But while Tory MP James Daly said he “fully accepts” the loss of these councils, he insisted to Sky News his party could “still win in parts of the country where historically Labour have dominated” – including in Teeside, where Conservative Lord Houchen is defending his mayoralty.

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Other results in so far include Labour holding on to Sunderland Council, along with local authorities in South Tyneside, Chorley and Newcastle,

However, the Greens won a number of seats from Labour in Newcastle, with the party’s co-leader Carla Denyer telling Sky News it was over its position on the conflict in Gaza.

The Conservatives held on to Broxbourne Council in Hertfordshire – an authority it has run for its entire 52-year history.

Senior Tories are predicting they will lose the Blackpool South by-election as counting gets under way.

Sources told Sky News’ political correspondent Tamara Cohen they did “not expect to hold” the seat – which they won with a 3,690 majority in 2019.

And they said the “stars could not be more aligned against us” following scandals hitting local MPs.

Follow live: Tories braced for potentially difficult night in local elections

The by-election was called after the former Conservative MP Scott Benton was caught in a sting by the Times newspaper, suggesting he was willing to break lobbying rules for money.

As a result, he was suspended from the Commons for 35 days, meaning he was subject to a recall petition in his constituency.

But instead of facing removal from his seat, Mr Benton resigned from parliament, triggering a vote for a new MP.

In an added painful twist for the Tories, the candidate standing to replace him, David Jones, was revealed as the chairman of the Fylde Conservatives – the area represented by the latest scandal hit MP Mark Menzies.

Mr Menzies hit the headlines after claims he misused campaign funds – including by calling a member of the local association to say he was locked in a flat by “bad people” and needed £5,000 as a matter of “life and death”.

Mr Jones denied he knew anything about the incident – which was allegedly reported to the Conservative Party three months ago – until it was revealed in the media.

Labour sources told Sky News they were confident of a win in Blackpool South, despite it being a seat held by the Tories for 57 of the 78 years it has existed.

However, Labour did hold the constituency between 1997 and 2019 – before Boris Johnson and the Conservatives won over a number of the so-called Red Wall seats in the north of England.

Labour MP Samantha Dixon told Sky News’ chief political correspondent, Jon Craig, at the count that it was “going to be a very good night” for her party, claiming the local candidate, Chris Webb, had “given people a reason to come out and vote”.

She added: “We don’t know what the turnout figures are going to be [yet], but I think they’re going to be encouraging, because I think what you’ve seen is people turning to Labour as opposed to being turned off politics.”

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The by-election comes at the same time as a range of local council, mayoral, and police and crime commissioner votes across both England and Wales.

Tory sources told Tamara Cohen they were expecting to lose upwards of 500 seats, which would be a big blow to the party ahead of a general election.

But Labour sources claimed the number would be far fewer – despite the party bounding ahead of the Conservatives in national polling.

Speaking to Sky News late on Thursday night, Labour Party chair Anneliese Dodds would not put a number on how many council seats would be a good result for her, saying: “I think the key thing is going to be to see whether Labour is moving forward in those areas where it’s really critical that we build support before the next general election.”

Meanwhile, the Liberal Democrats were in a positive mood in the early hours of Friday, with sources telling Sky News they were “hearing of gains in former Conservative heartlands” – including in Oxfordshire, Hampshire and Hertfordshire.

Follow our live coverage of the election results from midnight – find the full details here.